Some Closed Sam’s Clubs Could Become E-Commerce Centers

MOUNT OLIVE, NJ — After the abrupt closure of 63 Sam's Clubs nationwide, including several in New Jersey, the company has announced that some closed stores will be converted into e-commerce fulfillment centers.

Up to 12 of the 63 closed stores will be converted, the company said in a Thursday night statement, in an effort to speed up delivery of online orders. The first store to be converted will be the Memphis, Tennessee location.

It was not clear which, if any, of the New Jersey locations would be converted into e-commerce centers. Mount Olive and Linden both closed effective Thursday; Princeton will close on Jan. 27. Walmart, which owns Sam's Club, has not returned Patch's multiple requests for comment.

• Read More: Sam's Club Abruptly Closes NJ Locations

In a statement, the company said the closures came after a "thorough performance review."

“Transforming our business means managing our real estate portfolio and Walmart needs a strong fleet of Sam’s Clubs that are fit for the future,” John Furner, president and CEO of Sam’s Club, said. “We know this is difficult news for our associates and we are working to place as many of them as possible at nearby locations. Our focus today has been on those associates and their communities, and communicating with them.”

This statement was similar to one posted on the company's Twitter account in response to customer complaints on Thursday.

News of the closures came on the same day Walmart announced an increase in their minimum hourly salary, up to $11 an hour, and $1,000 bonuses for certain employees. The company credited recent changes in the tax code for the raises.

Employees who lost jobs in the closure will be given 60 days of pay at the $11 rate; eligible employees will also receive severance pay and the bonus.

Some employees might be transferred to other Sam's Club locations, or to nearby Walmarts. It was not clear how these transfers might be facilitated, or how many employees would benefit.

“We need great people to help lead us into the future and we hope that many of them will stay with the company at either a local store or club,” Furner said. “Change is never easy, but we’re making these decisions as part of running a healthy business.”

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